Already in financial straits, City of Poughkeepsie faces higher interest rates on loans

8:44 AM,
Jan. 12, 2014

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The City of Poughkeepsie faces paying higher interest on future borrowing with the recent downgrade in the city's credit rating by Moody's Investors Service.

The national credit rating agency downgraded from Baa2 to Baa3 the city's $49.6 million in outstanding rated debt.

"What it means as a practical matter is if they have to go to market to borrow money they will pay a higher interest rate," said Alan Schankel, managing director with Janney Montgomery Scott LLC, an investment firm based in Philadelphia. ...